Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Tata Motors Passenger Vehicles had a gross margin of 36.55% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Tata Motors Passenger Vehicles Gross Margin % Related Terms
Tata Motors Passenger Vehicles Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:TMPV vs TSLA, GM, F: Gross Margin % Comparison
For the Auto Manufacturers subindustry, Tata Motors Passenger Vehicles's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tata Motors Passenger Vehicles Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Tata Motors Passenger Vehicles's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tata Motors Passenger Vehicles's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Tata Motors Passenger Vehicles (NSE:TMPV) has a Gross Margin % of 36.55% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tata Motors Passenger Vehicles and its competitors. This is near median its historical median of 35.14. Over the past decade, Tata Motors Passenger Vehicles' Gross Margin % has ranged from 33.48 to 38.61. According to the industry distribution chart, Tata Motors Passenger Vehicles ranks #250 out of 1313 companies in the Vehicles & Parts industry, placing it in the top 19%.
Is Tata Motors Passenger Vehicles' Gross Margin % too high?
Tata Motors Passenger Vehicles' current Gross Margin % of 36.55% is near median its 10-year median of 35.14. Over the past 10 years, this metric has ranged from a low of 33.48 to a high of 38.61. The Vehicles & Parts industry median Gross Margin % is 19.84. Tata Motors Passenger Vehicles' value of 36.55% is 84.2% above this industry median. Based on the distribution chart, Tata Motors Passenger Vehicles ranks #250 out of 1313 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Tata Motors Passenger Vehicles has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tata Motors Passenger Vehicles' Gross Margin % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Tata Motors Passenger Vehicles ranks #250 out of 1313 companies for Gross Margin %. This places Tata Motors Passenger Vehicles in the top 19% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 19.84. Tata Motors Passenger Vehicles' value of 36.55% is 84.2% above this benchmark. Historically, Tata Motors Passenger Vehicles' own Gross Margin % has ranged from 33.48 to 38.61 over the past decade. While the company's 10-year median is 35.14 vs. the industry median of 19.84, Tata Motors Passenger Vehicles has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,313 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tata Motors Passenger Vehicles's current Gross Margin % of 36.55% is 84.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Tata Motors Passenger Vehicles and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Motors Passenger Vehicles's current Gross Margin % is 36.55%, which is near median its own 10-year median of 35.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tata Motors Passenger Vehicles stock overvalued right now?
Based on GuruFocus' analysis, Tata Motors Passenger Vehicles (NSE:TMPV) is currently considered Fairly Valued. The stock's GF Value™ is ₹333.21, compared to a current price of ₹349.70 — trading 4.9% above its estimated fair value. The current Gross Margin % is 36.55%, which is near median its 10-year median of 35.14 and 84.2% above the Vehicles & Parts industry median of 19.84. Tata Motors Passenger Vehicles' overall GF Score™ is 69/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Tata Motors Passenger Vehicles (NSE:TMPV), the current Gross Margin % is 36.55% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Tata Motors Passenger Vehicles (NSE:TMPV) Overvalued in 2026?
Based on GuruFocus' analysis, Tata Motors Passenger Vehicles stock appears to be overvalued.
The current stock price of ₹349.70 is trading 4.9% above its estimated GF Value™ of ₹333.21.
GuruFocus considers Tata Motors Passenger Vehicles to be Fairly Valued.
Key valuation signals for NSE:TMPV:
Gross Margin %: 36.55% (near median its 10-year median of 35.14)
GF Value™: ₹333.21 vs. price of ₹349.70 (4.9% above fair value)
Industry Position: 84.2% above the Vehicles & Parts median (#250 of 1313)
No single metric tells the full story. See the NSE:TMPV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tata Motors Passenger Vehicles Business Description
Tata Motors Passenger Vehicles Ltd Formerly Tata Motors Ltd designs, manufactures and sells a wide range of automotive vehicles and provides information technology services. The company also manufactures engines for industrial applications. Its operating segments include Automotive and Others. It mainly operates in the automotive business. The automotive business includes all activities relating to development, design, manufacture, assembly and sale of vehicles, as well as sale of related parts, accessories and services. The Automotive segment consists of three reportable sub-segments: Tata Commercial Vehicles, Tata Passenger Vehicles and Jaguar Land Rover of which majority of revenue comes from Jaguar Land Rover. It has majority of sales from India followed by United States, UK, etc.
69GF Score
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